Ruled in favour of Pushpalata Sudam Nimse (Petitioner)
In Short
A borrower facing a bank auction for unpaid loan dues rushed to court to stop the sale because she wanted to sell the property privately at a better price. The court agreed to press pause on the auction for two weeks after her lawyer handed over a ten lakh rupee demand draft to the bank.
The Parties
Party A: Pushpalata Sudam Nimse
Party B: State of Maharashtra & Ors. (including Respondent No.7 / the Patsanstha)
Advocates & Judges
For Party A: Learned Advocate Ms. Darshna Naval a/w Amrit Rathi i/b Oakmont Legal
For Party B: Learned Advocate Mr. Vaibhav Charalwar, Learned Advocate Mr. Kuldeep Nikam i/b Om Latpate
Judge(s): Hon'ble Justice Bharati Dangre, Hon'ble Justice Ashish S. Chavan
What the Case Was About
The petitioner borrowed money from a cooperative credit society and fell behind on her loan payments, leading the bank to obtain a recovery certificate for over fifty-four lakh rupees. When the debt remained unpaid, the bank scheduled an auction to sell her mortgaged property to recover the cash. The borrower did not deny that she owed the money, but she argued that her property was worth much more than the debt. Her son stepped in and started talking to private buyers to sell the property at a fair market price so they could pay off the bank in full instead of letting it go for a cheap auction price. To prove her good faith, she brought a ten lakh rupee demand draft to court and asked for a short pause to close the private deal.
Judgment Date
23rd October 2026
The Outcome
The court temporarily stopped the bank auction and gave the borrower a two-week window to show progress on her private property sale.
What the Court Looked At
- The court noted that the petitioner admitted she owed roughly fifty-eight lakh rupees in total dues to the bank.
- The court observed that the petitioner's son was actively negotiating with private parties to sell the property for a better price.
- The court considered the bank counsel's willingness to cooperate on the condition that the pause lasted only two weeks.
- The court acknowledged that the petitioner handed over a demand draft of ten lakh rupees to defer the auction.
What This Means For You
When a bank starts legal steps to auction your property for unpaid loan dues, sitting back and ignoring the notice will only lead to losing your asset. As this case shows, stepping forward with a partial payment—such as a ten lakh rupee demand draft—and showing a concrete plan to sell the property yourself can convince the court and the bank to give you a short extension. However, courts and banks will not wait forever; you must act fast, bring real money to the table, and have genuine buyers lined up if you want to save your property from a distress sale. If you find yourself facing an unexpected bank auction or struggling to manage heavy loan debts, Setback Solutions can help you understand your options and coordinate your next steps in plain, simple language.
You Still Have Options
If you are currently facing a bank auction, dealing with heavy loan defaults, or wondering what your next move should be after a recovery notice, remember that it is not the end of the road. You can still explore alternative paths such as negotiating a settlement, seeking a second opinion, or getting non-judicial guidance on how to handle your lenders. Reach out to Setback Solutions for help understanding your options and coordinating the next steps. Please note that Setback Solutions is not a law firm, does not give legal advice, and never guarantees any specific result.